Recommendation 7

Grant-in-aid from the Department forms a significant proportion of the total income of the sponsored museums and galleries. It was, for example, an average of 46% of total income in 2024–25.13 We therefore asked whether the provision of grant-in-aid meant there was any incentive for the museums and galleries to do better in terms of generating their own income, controlling their costs or producing a better offering for visitors. In response, the Department said that it was always thinking about getting the incentives right.14 It felt that the museums and galleries were incredibly motivated and incentivised to raise their own income and to look at their cost base and see where they can save money.15 For example, quite a few museums and galleries had taken specific measures to manage their costs in the last year.16 Also, despite total visitor numbers being 13% lower in 2024–25 than before the pandemic, total self-generated income of the museums and galleries of £563 million was slightly higher than pre-COVID levels.17 According to the Department, the museums and galleries often wanted to do more, but could not because of their financial position.18 11 Qq 12-13 12 C&AG’s report, para 17; Q 12 13 C&AG’s report, para 1.7 14 Q 18 15 Qq 18, 32 and 44-45 16 Q 32 17 Q 45 18 Q 18 9